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T-Mobile Assures You MetroPCS Deal Not Like Sprint/Nextel
Company Tries to Sell Deal to Wall Street
by Karl Bode 11:30AM Wednesday Oct 10 2012
T-Mobile this week took more than a few shots at rival Sprint after rumors emerged suggesting that Sprint was pondering a counter-offer for MetroPCS. The rumor likely isn't substantial, given that Sprint's attempt to acquire MetroPCS was already shot down once at the last second by the company's board. Still, it was substantial enough for T-Mobile CTO Neville Ray to feel he needed to take a few jabs at Sprint on a company conference call with analysts and the press.

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Based on their comments this week, T-Mobile appears particularly worried investors will equate their MetroPCS deal with Sprint's disastrous 2005 Nextel acquisition, which put Sprint into a multi-year tailspin they're only just now truly emerging from. T-Mobile argues that while the two companies do use conflicting technologies, they'll avoid the same pitfalls that plagued Sprint:
quote:
Nextel used a wireless network called iDEN, and now Sprint is shutting it down after years of burdensome costs from running two networks. The Nextel shutdown has buoyed Sprint’s recent prospects. Ray said T-Mobile wouldn’t make the same mistake though MetroPCS uses CDMA technology and T-Mobile uses yet another technology called GSM. "This is not about combining CDMA with GSM band technology,” Ray said. “We’re going to close the CDMA network down." Ray’s central message was that T-Mobile would migrate MetroPCS customers toward its network rather than run parallel systems.
According to a new Securities and Exchange Commission filing, the planned migration of MetroPCS users has of course killed serveral initiatives at MetroPCS, such as their plan to embrace voice over LTE more quickly than other carriers.

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mob
On the next level..
Premium
join:2000-10-07

1 recommendation

It will be

It will be exactly like Sprint/Nextel if the deal goes through.

tiger72
SexaT duorP
Premium
join:2001-03-28
Saint Louis, MO
kudos:1

4 recommendations

Re: It will be

said by mob:

It will be exactly like Sprint/Nextel if the deal goes through.

LOL.
Sprint had an interest in keeping iDen around due to Direct Connect. It then wasn't sure if it wanted to refarm iden or turn it into their low-cost network (Boost originally). Of course, this pissed off their expensive Nextel customers who had degraded service thanks to the Boost influx. Finally, some 5 years later, Sprint decided that they should shutter the iDen network in a few years, and then refarm the spectrum.. you know... eventually.

In contrast, T-Mobile has no interest in keeping CDMA2000 around. Metro's network doesn't even use EvDO. That makes it both inefficient and technically worse on all merits. T-Mobile has stated since day 1 that they want to move CDMA customers to HSPA+ so they can refarm CDMA for even more HSPA+.

Unlike Sprint with iDen, there's no reason T-Mobile would have to keep CDMA around. It needs spectrum, and the longer CDMA sits on that spectrum, the longer they languish. Considering their numerous spectrum-grabs over the year, as well as aggressive spectrum refarm, as well as unlimited data push, they certainly seem to know where they want to go (again, unlike Sprint when it bought Nextel).

TL;DR
I fell for ze trolling.
--
"What makes us omniscient? Have we a record of omniscience? ...If we can't persuade nations with comparable values of the merit of our cause, we'd better reexamine our reasoning."
-United States Secretary of Defense (1961-1968) Robert S. McNamara

MovieLover76

join:2009-09-11
kudos:1

Re: It will be

The only problem I think they'll have is that prepaid customers buy new phones much less frequently than postpaid, so getting all of the cdma users upgraded to HSPA+/LTE phones will take quite awhile. Prepaid doesn't offer phone subsidies so you can't even give away free phones to MetroPCS customers.

They will have to get inventive to upgrade those MetroPCS customers
hottboiinnc
ME

join:2003-10-15
Cleveland, OH

Re: It will be

prepaid customers actually buy more phones as they're not tied to just one phone and a contract or the cost to change the ESN. On the GSM side, it would be easy for a Metro customer go to their local Target or TMO store and buy a phone without doing much.

And with TMO "supporting" the iPhone5 more and more people will likley buy it now and use it on the new company.

buddahbless

join:2005-03-21
Premium
Reviews:
·AT&T DSL Service

Re: It will be

hottboi we actually semi agree on something.. Also the fact that TMO is looking to put metro pcs customers on HSPA while deploying there own LTE so all those previous refurbished HSPA smart phone ( and feature phones) will be a easy sale to Metro customers for a price much less than purchasing a new TMO LTE enabled phone not to mention they can still label it a 4G phone as Metros LTE is just as fast as TMO HSPA. Heck TMO could/ might actually give Metro customers free refurbished comparable TMO HSPA phones (post and prepaid customers) to Metro customers who choose to stay to keep them happy.

tiger72
SexaT duorP
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join:2001-03-28
Saint Louis, MO
kudos:1
said by MovieLover76:

The only problem I think they'll have is that prepaid customers buy new phones much less frequently than postpaid, so getting all of the cdma users upgraded to HSPA+/LTE phones will take quite awhile. Prepaid doesn't offer phone subsidies so you can't even give away free phones to MetroPCS customers.

They will have to get inventive to upgrade those MetroPCS customers

According to MetroPCS, their customer phone churn is 60-65% per year. After 2-3 years, a vast majority of their customers would upgrade themselves to T-Mobile UMTS/LTE equipment. Let's not forget that customers themselves would have an incentive to upgrade to T-Mobile's *significantly* better performing network.

I don't think that the transition will be flawless - there are always speedbumps along the way. However they do seem to be quite aware of the flawed approaches of the past.
--
"What makes us omniscient? Have we a record of omniscience? ...If we can't persuade nations with comparable values of the merit of our cause, we'd better reexamine our reasoning."
-United States Secretary of Defense (1961-1968) Robert S. McNamara
Sammer

join:2005-12-22
Canonsburg, PA
said by mob:

It will be exactly like Sprint/Nextel if the deal goes through.

It's completely different because Deutsche Telekom's motives are completely different. This deal is about spectrum and turning a wholly owned subsidiary into a stock (26% to MetroPCS shareholders that can be publicly traded, 74% that Deutsche Telekom can sell or spin off whenever it wants) company.

AnonFTW

@rr.com
said by mob:

It will be exactly like Sprint/Nextel if the deal goes through.

No, it won't. It will be like the AT&T/Cingular merger where customers were slowly migrated from the "Blue to Orange" network. That went off relatively well.

Sprint's downfall was they tried to operate both a CDMA and an iDEN network with no plans to shutter either. Both networks suffered as a result.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH
No it won't. Sprint NEVER tried to move customers from one network to the other. Instead they allowed customers to move between them. Sprint set it up to fail, maybe even hoping they'd be bought up. But in the end, they failed and still are feeling those affects. They maybe trying to still turn around, but they are far from really improving. They won't be able to do that until they start bringing in some HUGE amounts of money and their recent beatings over LTE is just the start of the company going down again.

Sprint used to pride itself with the street level coverage map, but now moving away from it? Seems crazy to me since others are now going to it. Sprint will never be the company they were at one time. But if they brought back a TON of their CSRs including the Nextel reps - who knew what they were doing- they'd improve much more. But that won't happen.

jimk
Premium
join:2006-04-15
Raleigh, NC
Reviews:
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·voip.ms
said by mob:

It will be exactly like Sprint/Nextel if the deal goes through.

No, it will probably be more similar to AT&T's acquisition of some Alltel service areas that Verizon wasn't allowed to keep. The Alltel network was converted from CDMA2000 to GSM/UMTS in these areas and you didn't hear anything about it because it went pretty smoothly.

The transition of MetroPCS customers to T-Mobile won't be quite as quick, but they have already set a date. The plan is to shut down MetroPCS's CDMA2000 network in 2015, and considering that full approval of the deal won't be completed until sometime next year, that isn't an insanely long transition time.

Both AT&T and Verizon have managed to acquire providers and integrate networks without it being a total disaster like Sprint and Nextel were. One carrier's poor execution of a merger doesn't mean the rest of the providers will have the same issue.

In addition to what appears to be a lack of planning, Nextel's iDEN network caused some complications since there wasn't a clear upgrade path to a more modern technology and it was very proprietary. Only Motorola made equipment for it, with the exception of a handful of BlackBerry devices. There were only a handful of iDEN/CDMA2000 phones and those didn't seem to sell very well, and had technical limitations. In contrast, there are already numerous phones that can run CDMA2000, GSM, UMTS, and LTE all in one device... so they can start selling phones that work on MetroPCS now, and they will continue to work on T-Mobile in the future.
xenophon

join:2007-09-17

1 recommendation

Sprint counter offer just a ploy

Sprint needs to focus on the LTE/Network Vision rollout. A merger would be distracting, raise the debt and wouldn't improve assets that much. They are just playing an offer to try and raise price for Tmob. When T-Metro struggles with the merger, and they will, many will hop over to Sprint.

If T-Metro proves to be effective post-merger, Sprint could then consider Leap, but they don't need to address that for another year or 3.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH

Re: Sprint counter offer just a ploy

Metro customers won't move to Sprint. They're not with them now due to cost. Otherwise they wouldn't be in business. TMO-USA taking Metro customers won't be that hard. It's easy to stop selling Metro phones and drop TMO's in the stores. Rebrand everything and give customers discounts on buying new phones. Hell, TMO lets you already bring your own device. Something Sprint DOES NOT and makes you buy a new one and brings out the contract. VM doesn't offer a contract, but also does NOT roam out side of the Sprint network; unlike their MVNOs that now have that option (StraightTalk, Ting, etc).

JamesPC

join:2005-10-12
Orange, CA

Re: Sprint counter offer just a ploy

said by hottboiinnc:

Metro customers won't move to Sprint. They're not with them now due to cost. Otherwise they wouldn't be in business. TMO-USA taking Metro customers won't be that hard. It's easy to stop selling Metro phones and drop TMO's in the stores. Rebrand everything and give customers discounts on buying new phones. Hell, TMO lets you already bring your own device. Something Sprint DOES NOT and makes you buy a new one and brings out the contract. VM doesn't offer a contract, but also does NOT roam out side of the Sprint network; unlike their MVNOs that now have that option (StraightTalk, Ting, etc).

Your a trip how much your hate for sprint blinds you from reality.
brianiscool

join:2000-08-16
Tampa, FL
kudos:1

Bah

They better not merge pay per month customer's to their CDMA network. MetroPCS has terrible coverage especially indoors.
Sammer

join:2005-12-22
Canonsburg, PA

Re: Bah

They don't plan to merge anyone to CDMA because they're planning to shut down the MetroPCS CDMA network in 2015.
TuxRaiderPen

join:2009-09-19

Do the technology shuffle.

Its NOT different in the least...

The ONLY change.

Tmobile - GSM*, UMTS*, LTE

quote:
Ray said T-Mobile wouldn’t make the same mistake though MetroPCS uses CDMA technology and T-Mobile uses yet another technology called GSM. "This is not about combining CDMA with GSM band technology,” Ray said. “We’re going to close the CDMA network down." Ray’s central message was that T-Mobile would migrate MetroPCS customers toward its network rather than run parallel systems.
* - GSM is not a synonym for UMTS. GSM and UMTS are differing technologies RF wise and not related. They share a backend structure which makes upgrading from GSM to UMTS to LTE pretty much simple, and but they are NOT SYNONYMOUS!

MetroPCS = CDMA, LTE

How is this any different? ?

Two carriers, differing technologies one has to go away! Ok at least you learned that lesson... but how do you wholesale convert everything to LTE....and who is going to pay for the handset conversions? ? metroPCS subs ARE NOT! Thats another $$$ investment...

There is no savings in this merger just as there was none in the sprexhoostgin one. The one big factor that tmobile has going is that it didn't pollute the airwaves with iDEN and have to spend BILLIONS to clean it all up. Thats billons that could have been put into coverage ie: real towers v. roaming on VZW or no coverage.

Spin it all you want, its the same thing.

Differing carriers merge for no real good reason... other than a DT exit strategy to get out of the US market..

Where is the $$$ coming from to convert all of MetroPCS to LTE. That $$ from craptt won't cover this.. Surely you would not convert to UMTS and then LTE. Oh wait the LTE voice, voLTE is still in debacle,errr... committee......So you need at least UMTS and LTE...

Maybe if you had the $$$$ to wholesale mass convert everything on metroPCS from CDMA to UMTS and LTE en masse this would go smoother. Tmobile does not, so this will...be exactly like the last mess... change the players and the technologies involved. Same tune.

Let the new sprexhell begin...
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1311393600 - Back to Black.....Black....Black....

tiger72
SexaT duorP
Premium
join:2001-03-28
Saint Louis, MO
kudos:1

Re: Do the technology shuffle.

said by TuxRaiderPen:

* - GSM is not a synonym for UMTS. GSM and UMTS are differing technologies RF wise and not related. They share a backend structure which makes upgrading from GSM to UMTS to LTE pretty much simple, and but they are NOT SYNONYMOUS!

MetroPCS = CDMA, LTE

How is this any different? ?

Generally the industry refers to the 3gpp track as the "GSM" track. Most of the companies started with GSM, upgraded to UMTS, and are upgrading to LTE - all standards set by the 3gpp.

Kinda like how people refer to Sprint and VZW as "CDMA" networks. They're actually CDMA2000, but who gives a damn?

Two carriers, differing technologies one has to go away! Ok at least you learned that lesson... but how do you wholesale convert everything to LTE....and who is going to pay for the handset conversions? ? metroPCS subs ARE NOT! Thats another $$$ investment...

If you read up on the statements you'd see that MetroPCS subs turn over phones at about a 60% rate. Over the span of 3 years (assuming some people update more frequently while others take a bit longer) the natural rate of handset turnover means that Metro subs aren't being forced into some horrendous transition. They'll naturally do it themselves, assuming the existing trend continues.

There is no savings in this merger just as there was none in the sprexhoostgin one. The one big factor that tmobile has going is that it didn't pollute the airwaves with iDEN and have to spend BILLIONS to clean it all up. Thats billons that could have been put into coverage ie: real towers v. roaming on VZW or no coverage.

LOL. T-Mobile isn't doing this as a "cost savings". Those are your words. Their primary motive is to gain liquidity on T-Mobile USA. Their close secondary motive is to gain spectrum in large markets where spectrum is tight.

Spin it all you want, its the same thing.

Only if you know quite literally nothing about the wireless spectrum.

Differing carriers merge for no real good reason... other than a DT exit strategy to get out of the US market..

Where is the $$$ coming from to convert all of MetroPCS to LTE. That $$ from craptt won't cover this.. Surely you would not convert to UMTS and then LTE. Oh wait the LTE voice, voLTE is still in debacle,errr... committee......So you need at least UMTS and LTE...

Which is precisely what they've said all along. All new handsets sold by Metro would be UMTS/HSPA handsets.

Maybe if you had the $$$$ to wholesale mass convert everything on metroPCS from CDMA to UMTS and LTE en masse this would go smoother. Tmobile does not, so this will...be exactly like the last mess... change the players and the technologies involved. Same tune.

Let the new sprexhell begin...

Again. 60-65% handset turnover rate each year = most metro customers will upgrade themselves. This is already well documented.

The time you spent writing up your poorly-researched diatribe could have ironically been spent on lowering your blood pressure by reading the details of the merger.

This is far more like the Alltel->ATT divestiture than anything.
--
"What makes us omniscient? Have we a record of omniscience? ...If we can't persuade nations with comparable values of the merit of our cause, we'd better reexamine our reasoning."
-United States Secretary of Defense (1961-1968) Robert S. McNamara
Sammer

join:2005-12-22
Canonsburg, PA
said by TuxRaiderPen:

Spin it all you want, its the same thing

Differing carriers merge for no real good reason... other than a DT exit strategy to get out of the US market.

Where is the $$$ coming from to convert all of MetroPCS to LTE.

That depends on how much Deutsche Telekom is willing to risk on a last gasp effort to make some real money in the U.S. market. If all DT wanted was an exit strategy why not spin off T-Mobile USA to their share holders? While it's true this may end up being a way to cut what they see as future U.S. losses why wouldn't DT want this merger to succeed?
elefante72

join:2010-12-03
East Amherst, NY

This is a spectrum play and exit

Tmo has 2 problems:

1. The Germans want out, so how do I dump the assets - Sell to MetroPCS
2. TMO lacks bandwidth in the NE of which MetroPCS has for their LTE rollout - Check

It's all good. Luckily MetroPCS is prepaid, so what they will do is keep roaming arrangements in place w/ CDMA vendors (like an MVNO), and potentially shudder the CDMA network altogether, and stand up the LTE one in it's place. Then they spin MetroPCS off into an MVNO (like VM/Boost) and problem solved. There is some wimax in there, great they maintain that relationship w/ Clear just like VM/Boost. Now Tmo has a home grown MVNO just like Sprint. Extra bonus, separate marketing for price points.

The fact that Tmo doens't have LTE band support love is killing them, so that is why that MetroPCS spectrum is so important. They can survive a few years because their 3G network (where it exists) is so good HSPA42...

This is TOTALLY different than Nextel which was the only network of it's kind, so Sprint was forced to maintain craploads of cells and parallel networks. Whoever made that decision was an idiot.
tanzam75

join:2012-07-19

Re: This is a spectrum play and exit

said by elefante72:

1. The Germans want out, so how do I dump the assets - Sell to MetroPCS

T-Mobile isn't selling to MetroPCS. If anything, it's the other way around, as it is T-Mobile that is paying cash to MetroPCS' stockholders. (About half the cash that AT&T paid to T-Mobile as a breakup fee.)

The majority of the transaction is being done as a stock swap. T-Mobile will hold 72% of the stock in the combined company.

A lot of people get hung up in the legal technicalities, in which MetroPCS is the surviving entity. But the reason that it's called a "reverse" merger is that people know which company is actually taking over the other one.
tmc8080

join:2004-04-24
Brooklyn, NY
Reviews:
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differences..

Sprint was acquiring a better "BRAND" Nextel was at the top of their game for the push to talk & corporate markets which they served.. Then Sprint took a huge dump on those customers and lost them to Verizon.

Metro PCS? Very small geography coverage (for data) coverage and barely tolerable prices & terms of service. The good? From time to time they throw out cheap phones and plans which are "limited time offer" such as the $25 a month unlimited talk/text/web plans.. This is a deal where spectrum synergies come into plan jettisoning CDMA for GSM. Tmobile is in the best position to take AT&T customers rather than Sprint's upfront (which I thought the other way around-- at least not yet, until LTE becomes universal for voice & data).

Tmobile wants to be assoicated with that kind of aggressive customer grabbing marketing... albeit not at such low prices.. So, time will tell whether this deal is a substantially good one for consumers.